Firms with market power offer a differentiated product in order to

a. follow the trends
b. increase market power
c. support its contractors in low-wage countries
d. fill up costly warehouses
e. All of the answers are correct.

B

Economics

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Other things equal, when the real interest rate falls, C, I and NX ________ and the output gap will ________

A) decrease; decrease B) decrease; increase C) increase; increase D) increase; decrease

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All of the following are examples of negative externalities except one. Which is the exception?

a. water pollution b. your roommate going on a diet c. second-hand smoke d. loud conversation in the workplace e. your neighbor building a bomb shelter on her front lawn

Economics